Israel Bans Travel Perks for Mortgage Advisors
Translated & summarized from TheMarker by baba
Israel's Capital Markets Authority has banned non-bank companies from rewarding mortgage advisors and insurance agents with incentives like foreign trips for client referrals. The final regulations take effect in three months, ending a common industry practice. Draft rules for similar restrictions on institutional entities were also released.
The story in 5 lines · by baba
- Israel's Capital Markets Authority banned foreign travel perks for mortgage advisors.
- Non-bank credit companies are prohibited from rewarding advisors for client referrals.
- The new regulations will go into effect in three months.
- Draft rules for institutional entities were also published.
- The ban aims to end a common practice of offering incentives for new clients.
Israel's Capital Markets Authority has issued final regulations prohibiting non-bank credit companies from rewarding mortgage advisors and insurance agents for bringing in new clients. These new rules, which will take effect in three months, aim to end a widespread practice where companies offered incentives such as trips abroad to secure business.
In parallel, the authority released a draft of similar directives that will also apply to institutional entities. This move signifies a significant regulatory shift, curtailing the lucrative incentives that had become commonplace in the non-bank financial sector.
